Blog

Increase repeated sales of online store by means of RFM analysis

Step by step we are telling how to launch standard triggered mailing based on Recency and Frequency indicators in ActionAssistant.
retailCRM 23 Nov 2017

Customer base should generate extra profit. The main advantage is the cost of attraction. These customers already know you, you do not need to spend a lot of money to attract them. The only thing you need is to remind about yourself.

In order to maximize profit from the database, it is necessary to manage your customer`s life cycle.

Before extending your customers` life cycle, divide the base into segments. RFM analysis is at hand here. First of all, RFM analysis is a marketing tool that segments the base on criteria:

  • R = Recency, the time that has passed since the last purchase
  • F = Frequency, the total number of purchases
  • M = Monetary, the sum of the money spent

Customers from different segments have different needs and therefore respond differently to your mailings and offers. In this article, we will tell how to launch the universal triggered mailing based on Recency and Frequency indicators in retailCRM by means of ActionAssistant which will extend the life cycle of customers automatically.

As you have already understood, when setting up the mailing, we will not take into account the sum of the money spent. This indicator is tied to the niche of online store stronger than the others.

We will need 3 segments:

  • 1 completed order
  • 2 completed orders
  • 3 and more completed orders

Please note that we select not just orders but the completed ones.

The time that has passed since the last purchase we will regulate by means of ActionAssistant rules.

The mechanics “Time since the last purchase” is for this purpose.

Then, we proceed to creation and setting up the rules.

1) Getting into “New customers”

The rule works for those customers who have made the first purchase. It is important to start building relationships and make them loyal to the store.

  • congratulate with the first purchase
  • take a poll and gather additional information
  • tell about your loyalty program
  • try to upsell

Do not hurry to give discounts at once. The customer can become loyal in future and buy without discounts.

Rule settings:

The time window of conversion: 7 days

Rule actions trigger: 0 +6

Time since the last purchase: 10 days

Customers segment: 1 completed order

2) Getting into “Promising”

Promising customers need to be turned into loyal ones.

  • help in choosing
  • tell about your groups in social networks and events
  • share useful content (reviews, articles)

Be careful with discounts. Such customers have all chances to become regular buyers at full cost.

Rule settings:

The time window of conversion: 7 days

Rule actions trigger: 0 +10

Time since the last purchase: 25 days

Customers segment: 1 completed order, 2 completed orders

3) Getting into “Customers needing attention”

You have already spent resources on attracting such customers. Hold them strongly.

  • tell about advantages of your store
  • offer a discount one cannot refuse
  • send personalized recommendations

Rule settings:

The time window of conversion: 12 days

Rule actions trigger: 0 +12

Time since the last purchase: 51 days

Customers segment: 1 completed order, 2 completed orders

4) Getting into “Sleeping”

The main objective when working with such customers is to reactivate them by all means. If this does not work, you can unsubscribe them from the mailing in order to avoid wasting resources.

  • tell about promotions
  • send the goods with a discount or a sale
  • write why the customer should remain with your store

Rule settings:

The time window of conversion: 10 days

Rule actions trigger: 0 +15

Time since the last purchase: 75 days

Customers segment: 1 completed order, 2 completed orders

5) Getting into “Loyal”

The most valued customers. The faster this segment grows, the better. Show your loyal customers that they are appreciated. Discounts shouldn’t be used.

  • tell the customer that he/she is dear for you
  • ask for feedback
  • inform about personal service
  • make a personalized product offering

Rule settings:

The time window of conversion: 7 days

Rule actions trigger: 0 +14

Time since the last purchase: 20 days

Customers segment: 3 and more completed orders

6) Getting into “At risk”

Loyal customers who purchased long time ago, should be brought back by all means.

  • send useful articles or video
  • give a discount or a coupon
  • make a personalized product offering
  • tell about the sale

Rule settings:

The time window of conversion: 2 days

Rule actions trigger: 0 +10

Time since the last purchase: 56 days

Customers segment: 3 and more completed orders

7) Getting into “Lost”

Try to reactivate these customers using the most favourable offers.

  • find out the reason for leaving
  • tell why your store is better than the others
  • send a favourable discount
  • make a personalized product offering

Rule settings:

The time window of conversion: 14 days

Rule actions trigger: 0 +30

Time since the last purchase: 113 days

Customers segment: 3 and more completed orders

Also, in any rule, you can add SMS sending or assigning tasks to managers.

This is just the standard mailing based on Recency and Frequency indicators, which you can quickly launch almost in any online store. In the following articles, we will give additional strategies for ActionAssistant mailings.

comments powered by HyperComments